{"id":2456488,"date":"2020-03-30T00:00:00","date_gmt":"2020-03-30T06:00:00","guid":{"rendered":"https:\/\/www.aspentimes.com\/?p=323503"},"modified":"2020-03-30T07:46:55","modified_gmt":"2020-03-30T13:46:55","slug":"city-of-aspen-claims-immunity-against-burlingame-ranch-hoa-8m-claim","status":"publish","type":"post","link":"https:\/\/alwaysmountaintime.com\/kspn\/local-news\/city-of-aspen-claims-immunity-against-burlingame-ranch-hoa-8m-claim\/","title":{"rendered":"City of Aspen claims immunity against Burlingame Ranch HOA $8M claim"},"content":{"rendered":"<div class=\"swift-gallery p402_hide\" readability=\"6.6388888888889\">\n<ul id=\"imageGallery-323503-713\" class=\"gallery list-unstyled\">\n<li data-thumb=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-150x150.jpg\" data-src=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-1024x682.jpg\" data-sub-html=\"Kelsey Brunner\/The Aspen Times | Solar arrays can be seen on the roofs of complexes in Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)\" class=\"h-100\" readability=\"-0.5\">\n<div class=\"caption\" readability=\"10\">\n<p><strong>Solar arrays can be seen on the roofs of complexes in Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)<\/strong><br \/>Kelsey Brunner\/The Aspen Times<\/p>\n<\/div>\n<div class=\"row no-gutters h-100\">\n<div class=\"col my-auto\"> <img decoding=\"async\" src=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-1024x682.jpg\" data-no-lazy=\"1\" alt=\"Solar arrays can be seen on the roofs of complexes in Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)\"><\/div>\n<\/div>\n<\/li>\n<li data-thumb=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-1-150x150.jpg\" data-src=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-1-1024x682.jpg\" data-sub-html=\"Kelsey Brunner\/The Aspen Times | Cedar railings line the complexes at Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)\" class=\"h-100\" readability=\"-0.5\">\n<div class=\"caption\" readability=\"10\">\n<p><strong>Cedar railings line the complexes at Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)<\/strong><br \/>Kelsey Brunner\/The Aspen Times<\/p>\n<\/div>\n<div class=\"row no-gutters h-100\">\n<div class=\"col my-auto\"> <img decoding=\"async\" src=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-1-1024x682.jpg\" data-no-lazy=\"1\" alt=\"Cedar railings line the complexes at Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)\"><\/div>\n<\/div>\n<\/li>\n<li data-thumb=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-2-150x150.jpg\" data-src=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-2-1024x682.jpg\" data-sub-html=\"Kelsey Brunner\/The Aspen Times | A Burlingame Ranch apartment shows discoloration and wear on the cedar railings on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)\" class=\"h-100\" readability=\"-0.5\">\n<div class=\"caption\" readability=\"10\">\n<p><strong>A Burlingame Ranch apartment shows discoloration and wear on the cedar railings on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)<\/strong><br \/>Kelsey Brunner\/The Aspen Times<\/p>\n<\/div>\n<div class=\"row no-gutters h-100\">\n<div class=\"col my-auto\"> <img decoding=\"async\" src=\"https:\/\/cdn.aspentimes.com\/wp-content\/uploads\/sites\/5\/2020\/03\/BG2Defects-atd-033020-1-2-1024x682.jpg\" data-no-lazy=\"1\" alt=\"A Burlingame Ranch apartment shows discoloration and wear on the cedar railings on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)\"><\/div>\n<\/div>\n<\/li>\n<\/ul>\n<p class=\"caption-toggle\"><a href=\"https:\/\/www.aspentimes.com\/news\/local\/city-of-aspen-claims-immunity-against-burlingame-ranch-hoa-8m-claim\/#\" class=\"show-captions\">Show Captions<\/a><a href=\"https:\/\/www.aspentimes.com\/news\/local\/city-of-aspen-claims-immunity-against-burlingame-ranch-hoa-8m-claim\/#\" class=\"hide-captions\">Hide Captions<\/a><\/p>\n<\/div>\n<p class=\"STND-STND BodyText DropCap\">The homeowners association at <a id=\"N0x278b820N0x293c980:N0x278b820N0x2952bd8\" href=\"https:\/\/www.aspentimes.com\/news\/aspen-explains-burlingame-to-public\/\">Burlingame Ranch<\/a>, a city of Aspen developed affordable housing complex, has hired lawyers as it claims the municipal government is responsible for paying $8 million in construction defects and other associated costs.<\/p>\n<p class=\"STND-STND BodyText\">The city is claiming governmental <a id=\"N0x278b820N0x293caa0:N0x278b820N0x2952cf8\" href=\"https:\/\/law.justia.com\/codes\/colorado\/2016\/title-24\/administration\/article-10\/section-24-10-102\/\" target=\"_blank\" rel=\"noopener noreferrer\">immunity<\/a><i class=\"fas fa-external-link-alt\"><\/i> as it heads into arbitration with the HOA, which represents 82 condominium owners at phase 2 of Burlingame Ranch.<\/p>\n<p class=\"STND-STND BodyText\">At issue is the wildly different cost estimate of the repairs needed at the complex.<\/p>\n<p class=\"STND-STND BodyText\">The construction consultants hired by the HOA\u2019s attorney to assess the alleged defects estimate it will cost almost $4.9 million.<\/p>\n<p class=\"STND-STND BodyText\">The city\u2019s insurance carrier\u2019s consultant comes in at just under $820,000.<\/p>\n<p class=\"STND-STND BodyText\">Robert Lapidow, a Front Range-based attorney with <a id=\"N0x278b820N0x293cb00:N0x278b820N0x2952fc8\" href=\"https:\/\/www.omhlaw.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Overturf McGath &amp; Hull<\/a><i class=\"fas fa-external-link-alt\"><\/i>, retained by the city\u2019s insurance carrier, said Friday that government immunity is a justifiable defense to protect all Aspen citizens and the municipality, particularly when negotiations are unsuccessful.<\/p>\n<p class=\"STND-STND BodyText\">\u201cThis is a taxpayer-subsidized project and they shouldn\u2019t pay over-exaggerated claims,\u201d he said. \u201cThe city has limited resources and with claims like this government immunity is a defense the government can use.\u201d<\/p>\n<p class=\"STND-STND BodyText\">The two sides could not come to an agreement earlier this month in mediation and now are headed to arbitration.<\/p>\n<p class=\"STND-STND BodyText\">Chris Griffiths, also a Front Range-based attorney who represents the HOA, said the city has been dragging its feet for years in addressing the construction defects at Burlingame, which is off Highway 82 across from Buttermilk Ski Area.<\/p>\n<p class=\"STND-STND BodyText\">\u201cOur hope has been that one day we would have a conversation about what\u2019s wrong in that community, but that hope is fading,\u201d Griffiths said.<\/p>\n<p class=\"STND-STND BodyText\">Since homeowners started moving into their condos in 2015, construction defects began appearing \u2014 rapid deterioration of the exterior glulam wood beams, leaking roofs and failed solar systems among other issues, they claim.<\/p>\n<p class=\"STND-STND BodyText\">The HOA board sent a letter to homeowners earlier this month that summarized its negotiations and current position regarding the city\u2019s role as the developer of their deed-restricted units.<\/p>\n<p class=\"STND-STND BodyText\">\u201cIt is our position that the city of Aspen clearly and intentionally acted as a developer in this instance, and should be held to the standard of a developer,\u201d reads the letter. \u201cThe project was funded and managed by the (city\u2019s asset department) and city management, and maintained declarant control of the (Burlingame II) Board of Directors through the warranty period of our community.<\/p>\n<p class=\"STND-STND BodyText\">\u201cWe are disappointed in their decision to maintain this irresponsible position and to therefore force millions of dollars of repairs back on homeowners.\u201d<\/p>\n<p class=\"STND-STND BodyText\">The <a id=\"N0x278b820N0x293cb60:N0x278b820N0x2953568\" href=\"https:\/\/www.griffithslawpc.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Griffiths Law <\/a><i class=\"fas fa-external-link-alt\"><\/i>office hired three consulting firms to evaluate the engineering, mechanical and technology systems at Burlingame Ranch II. Griffiths said in order to collect the full amount for the HOA, his firm is charging a 50% contingency fee, plus expenses.<\/p>\n<p class=\"STND-STND BodyText\">The HOA\u2019s consultants found defects in the wood beams, patios and hand rails, rooftop solar systems, water heater plumbing, fan coils, coax cable, as well as the lack of consideration of water quality, fire alarm pull stations, siding, exterior sidewalk and stairway and pressure reducing valves.<\/p>\n<p class=\"STND-STND BodyText\">Haselden Construction and R.A. Nelson were the general contractors in the two phases of the original construction, which occurred between 2013 and 2015. Also on the project team were OZ Architecture, Resource Engineering Group, Inc., BA Consultants, Inc. and MV Consulting.<\/p>\n<p class=\"STND-STND BodyText\">Homeowners have been dealing with construction issues and the city for the past five years but with no resolution.<\/p>\n<p class=\"STND-STND BodyText\">The majority of residents in 2018 voted in favor to pursue a construction defect claim against the city.<\/p>\n<p class=\"STND-STND BodyText\">\u201cMy goal was to not have our homeowners pay an assessment for mandatory repairs specifically linked to construction design and installation defects,\u201d said Ben Yaeger, vice president of the Burlingame HOA board of directors.<\/p>\n<p class=\"STND-STND BodyText\">City Attorney Jim True said the city has tried to work with the HOA but the association\u2019s hired consultants\u2019 demands are too high.<\/p>\n<p class=\"STND-STND BodyText\">\u201cAlthough the city has always been willing to directly address some matters related to the construction of the property, the association has rejected every effort by the city to resolve certain issues,\u201d True wrote in an email. \u201cInstead, with the help of its attorneys and hired experts, the association demanded a large settlement.<\/p>\n<p class=\"STND-STND BodyText\">\u201cWhen the initial efforts at settlement failed, the attorneys for the association threatened to take this out of the litigation process and circumvent the agreed-upon procedure for resolution and make it a political matter,\u201d True continued. \u201cThis is apparently the next step in that effort to seek a political rather than a legal solution.\u201d<\/p>\n<p class=\"STND-STND BodyText\">In a Feb. 24 email from Griffiths to the city\u2019s attorneys, he suggests the municipal government\u2019s move to claim immunity rather than advancing the case to arbitration \u201cwould be politically devastating to say the least.\u201d<\/p>\n<p class=\"STND-STND BodyText\">Jacob Gudenkauf, an attorney with Overturf McGath &amp; Hull, wrote back in a March 2 email calling it coercion.<\/p>\n<p class=\"STND-STND BodyText\">\u201cTo the extent that the association seeks to make these claims political, I also remind you that the city subsidized this development to the tune of approximately $300,000 per unit, and many of the alleged defects appear to be the result of poor maintenance, or demands for a betterment or improvement of the current conditions,\u201d Gudenkauf wrote. \u201cShould there be any political implications raised by the association, I would suggest the association consider the implications of demanding the city pay an additional $4 million to further subsidize the Burlingame project.\u201d<\/p>\n<p class=\"STND-STND BodyText\">Griffiths said Friday that there is still time to talk.<\/p>\n<p class=\"STND-STND BodyText\">\u201cIf they want to negotiate, we will negotiate,\u201d he said. \u201cIf they want to talk about immunity, we\u2019ll talk politics.\u201d<\/p>\n<p class=\"STND-STND BodyText\">Lapidow, representing the city, said the municipal government has acknowledged there are construction issues that need repair and has made offers to the HOA to rectify them.<\/p>\n<p class=\"STND-STND BodyText\">\u201cIt\u2019s not that the city is trying to hide behind governmental immunity,\u201d he said. \u201cWe have made efforts to settle this.\u201d<\/p>\n<p class=\"STND-STND BodyText\">HOA President Steven Miller said homeowners feel the city needs to take full responsibility as the developer, especially because <a id=\"N0x278b820N0x293cce0:N0x278b820N0x2953ef8\" href=\"https:\/\/www.aspentimes.com\/news\/local\/aspens-electeds-sign-off-on-1-5m-in-contracts-to-build-affordable-housing\/\">it is in the process of developing the third phase<\/a> of Burlingame Ranch, which could have as many as 77 units.<\/p>\n<p class=\"STND-STND BodyText\">\u201cWe don\u2019t want our circumstances and problems to be overlooked in the development of (Burlingame III), so similar problems don\u2019t arise there,\u201d he said last week. \u201cWe also don\u2019t feel it\u2019s right for the city to move forward on developing another big project until the previous project is made whole and the original, as-built problems are resolved.\u201d<\/p>\n<p class=\"STND-STND BodyText\">The city <a id=\"N0x278b820N0x293ce00:N0x278b820N0x29540a8\" href=\"https:\/\/www.aspentimes.com\/news\/burlingame-hoa-city-of-aspen-reach-settlement-over-siding-issues\/\">settled with the HOA of Burlingame phase 1 in 2012<\/a> over defective siding by the manufacturer that was installed by Shaw Construction, the general contractor for that project.<\/p>\n<p class=\"STND-STND BodyText\">Miller and other homeowners said the first issue that arose in phase 2 was the glulam beams, when at move-in they were already deteriorating.<\/p>\n<p class=\"STND-STND BodyText\">City officials first claimed the wood would naturally fade and weather, and maintenance was not necessary, according to Miller.<\/p>\n<p class=\"STND-STND BodyText\">Then the city\u2019s position changed, with officials telling homeowners that the exterior beams required maintenance and instead of that cost being a line item in the HOA\u2019s capital reserve account, it needed to be in the annual budget.<\/p>\n<p class=\"STND-STND BodyText\">\u201cThey were distancing themselves from having to do anything,\u201d Miller said.<\/p>\n<p class=\"STND-STND BodyText\">That\u2019s when the HOA looked for outside representation.<\/p>\n<p class=\"STND-STND BodyText\">\u201cThe homeowners didn\u2019t want to do this,\u201d Yeager said Friday. \u201cBut the city didn\u2019t take this seriously and we didn\u2019t have the capacity to navigate through it.\u201d<\/p>\n<p class=\"STND-STND BodyText\">The city was the landowner at Burlingame II, but conveyed the land to the HOA in 2014 and 2015.<\/p>\n<p class=\"STND-STND BodyText\">The city held a majority on the HOA board with three staff members until 2017 when homeowners took over entirely, according to Chris Everson, the city\u2019s affordable housing project manager.<\/p>\n<p class=\"STND-STND BodyText\">The city\u2019s total public subsidy in the land, infrastructure and 82 condo units at Burlingame II is $27.2 million.<\/p>\n<p class=\"STND-STND BodyText\">Both sides were aiming for arbitration in May but with the government immunity issue, it\u2019s unclear what the next move is in the dispute.<\/p>\n<p class=\"STND-STND BodyText Tagline\"><a href=\"mailto:csackariason@aspentimes.com\">csackariason@aspentimes.com<\/a><\/p>\n<p><a href=\"https:\/\/www.aspentimes.com\/news\/local\/city-of-aspen-claims-immunity-against-burlingame-ranch-hoa-8m-claim\/\" target=\"_blank\" rel=\"noopener noreferrer\">via:: The Aspen Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Solar arrays can be seen on the roofs of complexes in Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)Kelsey Brunner\/The Aspen Times Cedar railings line the complexes at Burlingame Ranch on Tuesday, March 24, 2020. (Kelsey Brunner\/The Aspen Times)Kelsey Brunner\/The Aspen Times A Burlingame Ranch apartment shows discoloration and wear on the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[49],"tags":[],"class_list":["post-2456488","post","type-post","status-publish","format-standard","category-local-news"],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-08-18 07:04:56","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"KSPN The Valley&#039;s Quality Rock","distributor_original_site_url":"https:\/\/alwaysmountaintime.com\/kspn","push-errors":false,"_links":{"self":[{"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/posts\/2456488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/comments?post=2456488"}],"version-history":[{"count":1,"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/posts\/2456488\/revisions"}],"predecessor-version":[{"id":2456498,"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/posts\/2456488\/revisions\/2456498"}],"wp:attachment":[{"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/media?parent=2456488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/categories?post=2456488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alwaysmountaintime.com\/kspn\/wp-json\/wp\/v2\/tags?post=2456488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}